Residential Real Estate Market in Germany Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Report Covers Germany Residential Real Estate Market Trends. It is Segmented by Type (Villas and Landed Houses, Condominiums, and Apartments) and Key Cities (Berlin, Hamburg, Cologne, Munich, and the Rest of Germany). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Residential Real Estate Market in Germany Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Germany Residential Real Estate Market Size

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Germany Residential Real Estate Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 384.18 Billion
Market Size (2030) USD 446.66 Billion
CAGR (2025 - 2030) 3.06 %
Market Concentration Medium

Major Players

Germany Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Germany Residential Real Estate Market Analysis

The Germany Residential Real Estate Market size is estimated at USD 384.18 billion in 2025, and is expected to reach USD 446.66 billion by 2030, at a CAGR of greater than 3.06% during the forecast period (2025-2030).

The sale of residential property in Germany amounted to around EUR 3.7 billion (USD 4 billion) in the first half of 2023. This represented a decrease of 53% compared to the same period of the previous year and, at the same time, the lowest turnover in the first half of the year since 2011. In the year so far, there have been four transactions with volumes of more than a quarter of a billion euros each. These transactions accounted for 62% of the volume. However, according to the experts, about three-quarters of the sales were below EUR 50 million (USD 54 million).

However, several new building sales have been made public over the last few weeks and months, with multipliers exceeding 25 to 27 times annual rentals. Due to such benchmark transactions, the players have more certainty about the potential first yields in buying or selling.

The vacancy rate is already low in many cities and may worsen. Experts indicate that the number of completed units will be around 200,000 in a few years. The federal government has set a new construction target of only half that amount.

The timing may be suitable for owners willing to sell, while a favorable window of opportunity opens for long-term investors wanting to enter the market. The presence of equity investors in the market who stabilize prices, particularly for smaller and medium-sized properties, may favor early sales instead of waiting and observing. However, prices could fall again when this capital is used.

Germany Residential Real Estate Industry Overview

There is a growing fragmentation of the residential property market in Germany, which is becoming more and more competitive. Overall developments in the property sector are expected to take place, which could increase the interest of additional investors due to increased spending on infrastructure, new government initiatives aimed at driving investments, and new project announcements. Vonovia SE, Deutsche Wohnen SE, SAGA Hamburg, LEG Immobilien SE, and Consus Real Estate are some of the leading players in Germany.

Germany Residential Real Estate Market Leaders

  1. Vonovia SE

  2. Deutsche Wohnen SE

  3. SAGA Siedlungs-Aktiengesellschaft Hamburg

  4. LEG Immobilien SE

  5. Consus Real Estate

  6. *Disclaimer: Major Players sorted in no particular order
Germany Residential Real Estate Market Concentration
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Germany Residential Real Estate Market News

May 2023: Vonovia and CBRE Investment Management agreed to sell five assets totaling 1,350 apartments in Berlin, Munich, and Frankfurt. Three of these properties are new constructions finished and operated in the rental category. The remaining two are under construction, with completion scheduled for the second and third quarters of 2023.

January 2023: Vonovia, a German real estate corporation, invested in Gropyus, an Austrian developer of ecological dwellings. Vonovia, which has 1.5 million German citizens, will lead Gropyus' EUR 100 million (USD 106.79 million) series B investment to develop the latter's prefab manufacturing factory in Richen, Austria. FAM AB, a stakeholder in Gropyus, is also investing.

Germany Residential Real Estate Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Strong Demand and Rising Construction Activities to Drive the Market
    • 4.2.2 Rising House Prices in Germany Affecting Demand in the Market
  • 4.3 Market Restraints
    • 4.3.1 Weak economic environment
  • 4.4 Market Opportunities
    • 4.4.1 Recovery in Demand and Supply Demand Due to Government Initiatives
  • 4.5 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers/Consumers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Intensity of Competitive Rivalry
  • 4.6 Government Initiatives and Regulations for the Residential Real Estate Sector
  • 4.7 Residential Real Estate Buying Trends - Socio-economic and Demographic Insights
  • 4.8 Insights into Size of Real Estate Lending and Loan to Value Trends
  • 4.9 Insights into Interest Rate Regime for General Economy and Real Estate Lending
  • 4.10 Insights into Rental Yields in the Residential Real Estate Segment
  • 4.11 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
  • 4.12 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
  • 4.13 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
  • 4.14 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Type
    • 5.1.1 Villas and Landed Houses
    • 5.1.2 Condominiums and Apartments
  • 5.2 By Key Cities
    • 5.2.1 Berlin
    • 5.2.2 Hamburg
    • 5.2.3 Cologne
    • 5.2.4 Munich
    • 5.2.5 Rest of Germany

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 Vonovia SE
    • 6.2.2 Deutsche Wohnen SE
    • 6.2.3 SAGA Siedlungs-Aktiengesellschaft Hamburg
    • 6.2.4 LEG Immobilien SE
    • 6.2.5 Consus Real Estate
    • 6.2.6 Degewo
    • 6.2.7 Vivawest
    • 6.2.8 Residia Care Holding GmbH & Co.
    • 6.2.9 Wohnungsbaugenossenschaft Musikwinkel eG (WBG)
    • 6.2.10 ABG Frankfurt Holding*
  • *List Not Exhaustive
  • 6.3 Other Companies

7. FUTURE OF THE MARKET

8. APPENDIX

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Germany Residential Real Estate Industry Segmentation

Residential real estate refers to land and any buildings for residential purposes. The most common type of residential real estate is single-family dwellings. A complete background analysis of the German residential real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The German residential real estate market is segmented by type (villas, landed houses, condominiums, and apartments) and key cities (Berlin, Hamburg, Cologne, Munich, and the Rest of Germany). The report offers market size and forecasts for all the above segments in value (USD).

By Type Villas and Landed Houses
Condominiums and Apartments
By Key Cities Berlin
Hamburg
Cologne
Munich
Rest of Germany
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Germany Residential Real Estate Market Research FAQs

How big is the Germany Residential Real Estate Market?

The Germany Residential Real Estate Market size is expected to reach USD 384.18 billion in 2025 and grow at a CAGR of greater than 3.06% to reach USD 446.66 billion by 2030.

What is the current Germany Residential Real Estate Market size?

In 2025, the Germany Residential Real Estate Market size is expected to reach USD 384.18 billion.

Who are the key players in Germany Residential Real Estate Market?

Vonovia SE, Deutsche Wohnen SE, SAGA Siedlungs-Aktiengesellschaft Hamburg, LEG Immobilien SE and Consus Real Estate are the major companies operating in the Germany Residential Real Estate Market.

What years does this Germany Residential Real Estate Market cover, and what was the market size in 2024?

In 2024, the Germany Residential Real Estate Market size was estimated at USD 372.42 billion. The report covers the Germany Residential Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Germany Residential Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Residential Real Estate in Germany Industry Report

The Germany residential real estate market is currently experiencing significant growth and transformation. This market outlook indicates a shift towards sustainable and energy-efficient properties, with a notable demand for homes featuring solar panels, insulation, and smart technology. Urban living, particularly close to amenities, is becoming increasingly popular, especially among freelancers and remote workers.

The market size is expanding due to the stable economy and low interest rates, which attract both domestic and international investors. However, the market analysis reveals that housing shortages in major cities and macroeconomic factors, such as European Central Bank policies, present challenges. Despite these obstacles, the market forecast remains positive, driven by strong demand and sustainability trends.

The market segmentation highlights the focus on key urban centers with high demand, such as Berlin, Hamburg, Cologne, and Munich. The push for energy-efficient homes is supported by government initiatives, indicating a green transition that will shape the future of the German property market.

The market report provides detailed statistics, market share, size, and revenue growth insights. For those interested in a comprehensive analysis, Mordor Intelligence™ Industry Reports offer a free report pdf. This industry outlook is further enhanced by the analysis of market trends, industry statistics, and industry trends, which show diverse investment opportunities.

The market growth is also influenced by the preferences for co-living and co-working spaces. The industry analysis points to a robust growth rate, with market leaders driving innovation in sustainable housing. The market overview and market predictions suggest continued expansion, despite the existing challenges.

The report example and research companies provide an in-depth review of the market value and market forecast. The industry research and industry reports offer a detailed market review, highlighting the importance of market segmentation and the role of industry sales in driving market growth. The market data and industry size presented in the report underscore the market's resilience and potential for future development.